# Portugal's 2027 Rent Coefficient Set at 2.56%, Highest Since 2024

> INE confirms a 2.56% coefficient for 2027 rent updates — the steepest annual rise since 2024. What foreign tenants on older leases should expect in January.

- Source: https://www.growinportugal.com/news/portugal-s-2027-rent-update-coefficient-set-near-2-56-anothe-2026-10-03
- Publisher: GrowIN Portugal (https://www.growinportugal.com)
- Published: 2026-10-03
- Last reviewed: 2026-10-03
- Language: en

> **Key figures — as of 2026-10-03:** 2027 rent-update coefficient confirmed at **1.0256 (+2.56%)** — formalised via **Aviso n.º 24199/2026/2**, published in Diário da República on **1 October 2026** — up from **2.24%** in 2026 and **2.16%** in 2025; applies by default under NRAU Article 24 unless the lease sets its own formula; landlords can notify tenants in writing with **30 days'** notice, with the new rent taking effect from **1 January 2027**.

## The number that matters

Portugal's annual rent-update coefficient for 2027 has been fixed at **1.0256**, a **2.56%** rise, under **Aviso n.º 24199/2026/2** published in Diário da República on 1 October. The coefficient fixed by this notice translates into a 2.56% increase for the various types of tenancy for the 2027 civil year. That's a bigger jump than the 2.24% applied this year, and the third consecutive annual increase that outpaces what most tenants would call "normal" inflation-linked housekeeping.

The figure comes from the Instituto Nacional de Estatística (INE), which calculates it from average consumer price inflation excluding housing costs over the 12 months to August. Rents updated on the basis of the annual coefficient will rise 2.56% in 2027, based on average inflation over the last 12 months excluding housing, relative to August. Headline inflation actually ran higher — inflation in Portugal reached 3.3%, but the maximum rent increase will stand at 2.56% in 2027 — because the rent formula strips out housing costs from the basket, which keeps the coefficient lower than the general cost-of-living number tenants see on the news.

## Why this lands harder on older contracts

The coefficient is the default mechanism under the Novo Regime do Arrendamento Urbano (NRAU), and it applies to all types of tenancy, urban and rural, unless the parties have agreed a different update criterion. That "unless agreed otherwise" clause is the crux of this story for foreigners. Modern, professionally drafted leases — the kind increasingly common with international landlords and platforms — often build in their own escalation clause, sometimes tied to a fixed percentage or a different index. Older contracts, including many signed before or shortly after the 2006 NRAU reform and never formally revisited, typically have no such clause. They fall back automatically to whatever coefficient INE publishes each autumn.

The practical risk is compounding. Tenants on these older contracts don't always receive an update letter every single year — landlords sometimes let a coefficient lapse for a year or two before catching up. When that happens, the increase applied in January can reflect more than one year's coefficient at once, since Portuguese practice allows landlords to apply missed annual updates retroactively within the legal window.

## GrowIN's calculation: the compounding cost since 2024

Run the last four coefficients together — 1.0694 (2024), 1.0216 (2025), 1.0224 (2026) and 1.0256 (2027) — and a rent that was €1,000 in late 2023 would, if updated every single year, reach roughly **€1,145.57** by January 2027. That's a cumulative rise of close to **14.6%** in four years on a lease that may never have had a single negotiated increase — purely from the statutory coefficient stacking year on year. For a tenant who's gone three years without an update, catching up on 2025, 2026 and 2027 together in one letter could mean an immediate jump of well over 6% in a single month, not the gentler 2.56% the headline number suggests.

## What actually happens next, step by step

Landlords wanting to apply the 2027 coefficient must notify tenants in writing — typically by registered letter — stating the current rent, the coefficient used, and the new amount, with at least 30 days' notice before the increase takes effect. The 2027 coefficient is higher than 2026's 2.24%, adding to a market where rental housing supply is already scarce — down 22% this spring, according to several specialist portals. Tenants should check their contract's own update clause first; if it references the "legal coefficient" or stays silent on indexation, the INE figure almost certainly applies. If it sets its own formula, this notice may not apply at all.

**"A 2.56% headline increase can mask a much steeper bill for tenants whose landlord has let two or three years of coefficients stack up before sending the letter," says GrowIN Portugal Editorial.**

## What to watch

Separately, a broader rewrite of Portugal's rental rules is moving through parliament, though it hasn't been approved or published yet and doesn't change the 2027 coefficient itself. Tenants should also note that this annual coefficient is distinct from any rent cap debates in the legislature — the 2.56% figure is the one landlords can apply right now, once the Diário da República notice takes final form. For foreigners weighing whether to renew, renegotiate, or move, our [relocation](/relocation/) guide covers how Portuguese lease terms, notice periods and deposit rules typically work in practice.

Anyone unsure whether their lease falls under the default coefficient, or facing a backdated increase that seems disproportionate, should check the exact wording of their contract and, where the numbers involved are significant, get it reviewed before signing an acknowledgement of the new rent.

## Sources

- [Jornal de Negócios](https://www.jornaldenegocios.pt/economia/habitacao/detalhe/ine-confirma-aumento-de-2-56-nas-rendas-em-2027)
- [Cuatrecasas](https://www.cuatrecasas.com/pt/portugal/imobiliario/art/coeficiente-atualizacao-anual-rendas-2027)

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© GrowIN Portugal. Cite as: GrowIN Portugal, "Portugal's 2027 Rent Coefficient Set at 2.56%, Highest Since 2024", https://www.growinportugal.com/news/portugal-s-2027-rent-update-coefficient-set-near-2-56-anothe-2026-10-03